Building a Next-day shipping engine for your business
As increasing consumer demand accelerates e-commerce growth, the logistics of getting orders to customers becomes more complicated - especially with the novel coronavirus impacting entire supply chains. Despite the uncertain times (or more so during this time), one thing remains unchanged; the customer's need for fast delivery. Popularized by Amazon, same-day and next-day delivery has become the default expectation today. In fact, studies by PwC & Accenture reveal that: 61% of consumers are willing to pay more for 1-day shipping speed and 40% of customers prefer to shop from stores that offer 2-day shipping. More than (51%) half of retailers offer same-day delivery and 65% plan to offer it within two years. Fast shipping is no longer a good-to-have but rather a necessity for e-commerce businesses to survive. Amazon has built a supply chain that can deliver most products within 2-day (and high moving goods the same day). They optimize every part of the fulfilment value chain to achieve these timelines. But can other e-commerce sellers provide the same experience without Amazon-level resources? Yes, they can. How? To optimize the fulfilment cycle, we must first understand the ‘Click to Door’ journey - all the different stages and destinations an order goes through before it reaches your customer. Click to Door journey What does it take for an order to reach your customer? Let’s take a look. Pack & Ship: The journey starts with your warehouse, where the order has to be packed and labeled. This could typically take 1-2 days depending on order volume and your warehouse's manpower productivity. First Mile Delivery: The order is collected from your warehouse by a courier partner and shipped to the distribution center. Typically, the pick-up schedule is once a day if the warehouse is located in the metros. In case of larger order volumes, courier partners can also schedule multiple pick-ups every day. Mid Mile Delivery: This stage involves the transfer from one hub to another. All collected parcels are aggregated based on to and fro zones and moved together. The mid mile process, typically, takes one day. Local Sorting Center: Once the order reaches the delivery target zone hub, it is passed to the local sorting center based on the area of delivery. This typically takes anywhere from half a day to two days. Last Mile Delivery: Finally, the order is picked up from the sorting center and aggregated with multiple orders going to the same pin code and assigned to a delivery boy. The entire process is inherently long and relies on the productivity of your distribution partners and the partnership that you have with them. Inefficiencies in either of these stages can lead to significant delays and unhappy customers, i.e. lost revenue for your business. How can you optimize the process? To build an efficient shipping engine, your logistics network must be efficient. This incorporates a mix of partners, resources, and best practices designed to help you optimise. Schedule multiple pickups in a day Store goods in distributed warehouses close to your demand Partner with same-day delivery partners While you can implement the above processes yourself, it may require a lot of initial investment and stretch your capacities. A good alternative would be to partner with companies that offer logistics support. This is where we come in. Modern logistics partners such as WareIQ unifies network, technology, and expertise to offer end-to-end fulfilment services allowing you to focus on your core business and not worry about logistics. With WareIQ you get: The ability to store inventory in several of the fulfilment centers so you don’t have to manage your own warehouse(s) Robust technology that tracks your inventory and orders and offers advanced analytics The e-commerce logistics expertise needed to improve your supply chain Bulk discounts and ability to reduce your delivery times and shipping costs Many growing e-commerce businesses like Kama Ayurveda, Wingreens Farms, Sangeetha Mobiles, and Organic Riot partner with WareIQ to offer next-day shipping. WareIQ helps you shorten your orders’ click to door journey and make the entire process more efficient With WareIQ's infrastructure and technology, you can ship 90% of orders across India in 1 day. Such delivery timelines translate to not only cheaper logistics costs but an elevated customer experience, resulting in higher conversions and lower cart abandonment.
November 11, 2020
6 reasons to grow your business with WareIQ
WareIQ is an end-to-end solution for e-commerce fulfilment that allows you to ship 90% of your orders across India in 1 day - just like Amazon. Today, the coronavirus pandemic has further accelerated the already growing e-commerce economy, and customer demand is only expected to rise. The growing demand has led to supply chain management becoming more complex than ever before. However, what hasn’t changed is the customer’s expectation for fast, Amazon-like, delivery. Customers don't want to wait for orders to reach them within 5-15 working days, instead of by default, they end up comparing all shipping options to Amazon and expect their orders to reach them within 2 working days. Evidently, e-commerce stores that don’t offer this will lose customers to Amazon. To survive and remain competitive e-commerce businesses have to ‘deliver’ on this expectation. WareIQ’s technology prioritises speed and scale to give you complete control over your logistics and offer Amazon-like delivery to your customers. WareIQ unifies all your logistics operations into one platform so you can manage everything in one place - from inventory, orders, and warehousing, to shipping, delivery, and returns. No more wasted resources and fragmented data from a hundred different tools. Here are six ways we help e-commerce & DTC brands ace their logistics game: Faster reach & reduced delivery times: WareIQ allows you to reach a larger audience in a shorter period of time with storage facilities spread across India and closer to your demand centres. Our smart inventory placement ensures that your demand centres are well-stocked and enables efficient & prompt delivery. As per reports, 61% of consumers are willing to pay more for 1-day shipping speed and 40% of customers prefer to shop from stores that offer 2-day shipping. We help you evolve from a 5-15 day delivery system to the same day/next day Amazon-like delivery system and are already helping 100+ other brands in India to do so. Reduced overhead costs: WareIQ’s customers save resources that are typically spent on establishing infrastructure. We offer you the flexibility to store inventory in several or one fulfilment centres as per your business needs. Our team’s expertise in logistics and our extensive warehousing network across India enables greater influence during negotiations, resulting in volume discounts for our clients. Expert support: Given the vastness of the logistics involved we provide the expertise needed to improve and advance your supply chain for India’s ever-changing-commerce environment. It is difficult to foresee and accommodate internal expertise required across functions and geographical regions - that’s where we come in. Our teams support your day-to-day on-ground operations along with other requirements such as transport documentation, import and export licenses, compliances and economic regulations. Rich insights: WareIQ’s tech platform leverages real-time data to enable your organisation to predict demand. With this data, you can make wise data-driven decisions promptly thereby reducing costly delays and enabling supply chain efficiencies frequently. Scalability: When there is a surge in demand, your enterprise can upscale quickly, similarly, in case of a slack, downscaling is effortless. Our pay-as-you-go model allows simplified and flexible scalability. There are no redundant investments or under-utilised resources. With the world evolving as it is, scalability has proved itself to be the make or break factor to a large number of e-commerce businesses. Improved customer satisfaction: As discussed earlier, the success of your e-commerce business not only depends on your product quality but also on the time it takes to reach your customer. With WareIQ’s real-time data and prompt response times, you can ensure timely deliveries and greater brand reliability. This translates to satisfied customers — the most crucial success metric for DTC brands in a competitive space like India. WareIQ is trusted by leaders across industries. From brands like Kama Ayurveda, Wingreens Farms, Sangeetha Mobiles to Timios and Organic Riots - they all use our technology which is backed by investors such as YCombinator and Funders Club. We not only help you reduce your logistic costs but also your delivery timelines - this could be the game-changer your business needs! Today, over 100 brands have taken charge of their logistics & fulfilment with WareIQ to unlock tremendous value in terms of revenue and customer satisfaction. Learn more about our platform here. If you are ready to offer the benefits of Amazon-like next day delivery to your customers - Get in touch with us.
November 04, 2020